We must capitalise on the strengths of the EU, says Angela Merkel Photo: Bundesregierung/Bergmann

Today the heads of state and government of the EU member states are meeting in Brussels for a European Council meeting. Today and tomorrow they will be consulting primarily on the future development of the European economic and currency union.

Single market and enlargement

The European Council will also, however, be looking at ongoing and pending proposals to intensify the single market and dealing with suggestions for combating youth unemployment in Europe.

In addition to economic policy concerns, the Council will be taking stock of progress on enlargement and looking at the Common European Security and Defence Policy.

Competitiveness is the key to success

In her government statement in the German Bundestag, the Chancellor called for greater economic-policy coordination within the European Union so as to make Europe more competitive.

"In addition to better financial market regulation, improved banking supervision and fiscal cooperation, there is one key issue given the global competition we face, and that is competitiveness," declared Angela Merkel. "We can only restore growth and employment in the long term if we are competitive."

The Chancellor signalled Germany’s willingness to put in place limited-term financial incentives to restore the competitiveness of European partners.

But, she added "Germany rejects long-term joint liability for debt in any form. Yesterday’s ideas cannot help us resolve the crises of today or help us master the challenges of tomorrow," said Angela Merkel.

In the late afternoon today the EU heads of state and government will meet with Martin Schulz, President of the European Parliament. After the traditional "family photo" the first working sessions of the European Council will begin. The heads of state and government will be focusing primarily on the future form to be taken by the economic and currency union. They will be aiming to agree on a road map for the next steps to intensify the economic and currency union.